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Looking at the fundamentals underpinning the market,there is a perfect storm shaping up. Be prepared, be very prepared to make a ton o money fast.
Tech is breaking out all over. Even real-estate is starting to tick.
My step father, who reads this column everyday, asked me if he should sell his QQQQ's. I told him to sell if he had a better place for the money. I hope he did not sell because I have a different response after looking at the market tonight....... KEEP your QQQQ's. Only sell them after we get a double inversion in the LP followed by a double inversion in the Top 100. Since you read this column everyday, You will be among the first to know when that happens, and I will be sure to call you!
Secondly, because the fundamentals are so strong, let me update my goal on the DOW. I was calling for 14,355 if you remember. I am going to add 3% to that for a call of 14,785. It might not happen till the end of the year, but the fundamentals are really hot right now. I will also put some caveats in place here.... Baring any geopolitical risk or a melt down in the hot to trot Chinese market. A melt down in their market could spell short term trouble for our market.
What do I think is shaping up? I think that there is a ton of money that is going to be on shoring itself. I think that EUROPEAN money will start heading this way in droves. The US is on sale with the currency being so low and the rest of the world is standing up and taking notice. Believe it or not, but even huge world super powers like P and G could be in danger here. I look for strong inflows in middle eastern money here too. I think it is just a matter of time until more deals get announced. Nokia just announced it is buying NAVTEQ which gives this huge powerful European company all of our global positioning technology and while they paid up to land NAVTEQ, who cares? It was just $77 Us per share or $38.50 per share in their money.
With the US dollar so low, world demand for US goods is going to spike and the boating companies are going to not only have imports to haul but they will have large back hauls from the US too.
Us expansionism will be focused on low cost states and that will spell the next move up the rung for states like Tennessee. States where the business climate is inviting and the taxes are low. Forget places like Michigan. Michigan just raised its confiscatory taxes through the roof because the economy here is so bad. We just had the new MGM grand Detroit Casino
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Stock tips for a volatile Q4 2007 stock market
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